85.12 -1.81 (-2.13%) Buy

LOGM investors herd to book profits while the going is good

13 min read

LOGMEIN, INC. ranked among the worst performers today. It delivered -2.13% to close at 85.12. It's recent 5 day performance has been -1.14%, +0.78%, +1.02%, -0.39% and -1.21%.

[Themes containing LOGM]

LOGM showed a bullish trend over the last 3 months. During this period LOGM delivered +2.18% and saw a maximum drawdown of -14.88%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in LOGM till volatility reduces and a clear trend emerges.


LOGM has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 12 Apr, 2016 to 15 Feb, 2018. Over the last 2 years 11 months and 10 days, LOGM outperformed the SP500 index on 52% days.

During the last three months LOGM delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +10.9%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -4.73%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 18 Oct, 2018 and ended on 25 Oct, 2018. This bearish trend lost -10.21% of investor capital.

The last 12 months saw LOGM's investors making profits in 4 months and incurring losses in 8 months. LOGM was less consistent in delivering monthly returs than SP500 index. LOGM was also a more risky investment than SP500 index as it's worst month in the last year, Jul 2018, returned -22.1% compared to -7.28% returned by SP500 index in Oct 2018. LOGM had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Apr 2018 to Jul 2018) during which period it delivered -30.59%.

Innovation distinguishes between a leader and a follower.
-- Steve Jobs

LOGM is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in LOGM's volatility from 27 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that LOGM has significant positive skewness in it's return distribution. This indicates that investors can expect LOGM to recover from drawdowns quickly. Which makes LOGM a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than LOGM. Therefore, SP500 must receive a lower allocation than LOGM in your portfolio. SP500 index usually has shorter drawdown period than LOGM.

Based on your interest in LOGM you may find it interesting to know that ATRC and HCFT have both performed similar to LOGM and can be considered by investors as alternative investment options.

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